Community News May 25, 2018

Adena Maintains A3/Stable Rating by Moody’s

Moody’s Investors Service has affirmed Adena Health System’s A3 rating with a stable outlook. Moody’s Investors Service is a New York-based, nationally-prominent company that ranks businesses creditworthiness.

 Each year, the Health System presents its strategies, market trends and financial situation for evaluation and rating of Adena’s credit strength. The rating issued is closely watched by investors and potential investors; and is similar to an individual’s credit score.

 “We are extremely pleased with Moody’s evaluation and affirmation of Adena’s strategy and financial position,” said Chief Financial Officer Lisa Carlson. “Adena’s strong 2017 performance, and the organization’s positive momentum has given Moody’s credit analysts confidence in our financial position and leadership. The rating also indicates we can support future growth and expand our place in the service area.”

 Moody’s Investors Service currently has an overall negative outlook on the health care industry. Adena’s growth and positive performance is unusual in the current climate. The raters were complimentary of the System’s new leadership, identifying how strategies under our new team will support volume growth and sustain a leading market position. It said, “New management team members are quickly executing improvement strategies, and will provide stability and direction.”

 “Adena’s strategy of building its physician base of medical expertise, to provide care throughout our seven-county primary region is key to Adena’s growth, and keeping care close to home for our patients,” said Adena President and CEO Jeff Graham. “This affirmation tells us we are not only doing what’s best for our patients and the communities we serve, but we are on the right track for continued success.”

 According to the Moody’s report, Adena’s key strengths are: its market share; 2017 performance and momentum; and a strong balance sheet, with adequate cash and reasonable levels of debt. Weaknesses identified include the economic fundamentals of Adena’s service area, which includes a high exposure to the Ohio Medicaid program; low population growth; and relatively high levels of unemployment.